Before visiting properties: How to be a willing, able and ready buyer.
Today’s buyers often spend more time researching properties on the internet and less actual time with a real estate agent, often contacting an agent only when they are ready to look for properties. May buyers do not realize that a successful buying transaction requires that certain things must be completed in a specific sequence. It is part of our fiduciary duties to assist our clients and help them realize the process that will produce the best result.
Before going to see a property, there are steps that are required for a successful residential-buying transaction.
1- FICO score. You may want to know it before going to se a lender. FICO should tell you how to fix things if you have to.
2- Financial statement (co-ops)
3- Shop for a mortgage. Visit lenders and interview them. You will need a pre-approval letter.
4- Cash verification- Banks want to know where the money is coming from.
5- Income verified and source of income. Have the person’s name that the bank has to contact to verify income.
6- Tax returns
7- Letters: - Co-signers? You will need a co-signer letter - Gift money? You will need a gift letter. Make sure your benefactor knows about gift tax. - Reference letters (co-ops)
8- Foreign taxes: FIRPA
9- Do you need to sell in order to buy?
10- Criminal report on yourself. Some banks will run it
11- If buyer is under an LLC, buyer must know the law. Contact an attorney- you may have to disclose who are the people in the LLC.
YOU NEED A TEAM: Buyer’s Real Estate Agent, Attorney, CPA or financial person, Home Inspector, Mortgage Broker, Home Insurance Agent, Flood Insurance Agent. Remember, you will be competing with other buyers! You want to be not only willing to purchase a home, but also be able and ready to present that offer as soon as you see the home of your dreams!